Spanish Government Gives The Green Light To €11 Billion Aid Fund

SPANISH government gives the green light to the €11 billion aid fund for tourism, hospitality and small businesses

While no specific date has been given for the distribution of the funds, the government has today, March 12, given the go ahead for the €11billion in aid designed to help those in the tourism and hospitality industries, as well as small businesses, who have suffered the most from the closures during the coronavirus pandemic.

According to the Minister of Economy, Nadia Calviño, there is a direct aid fund of €7 billion, €2 billion of which will go directly to the Canary Islands and the Balearic Islands, the two communities most affected by the pandemic due to their dependence on tourist, according to the Executive. The remaining €5 billion will be shared out among the autonomous communities.

Overall, the aid will be managed by each autonomous community, who can compensate SMEs and micro-SMEs up to 40 per cent of lost income and up to 20 per cent for other companies.

As Calviño clarified in the press conference after the extraordinary meeting of the Council of Ministers, companies with drops of at least 30 per cent in turnover will be able to access the aid and it can be dedicated to the payment of fixed expenses, supplier debts and the payment of other expenses with financial and non-financial creditors.

Along with the direct aid, the plan includes a line of €3 billion that will be managed by the ICO to increase the terms of guarantees and their amounts. The remaining €1 billion, which will be managed by Cofides, will be used as a recapitalisation fund.

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